United States: BEA Reporting Deadline Approaches for US Persons with Foreign Affiliates

The US Department of Commerce's Bureau of Economic Analysis
(the "BEA") has amended the reporting requirements
applicable to US persons (defined below) related to its 2014 BE-10
Benchmark Survey of US Direct Investment Abroad. In particular, the
new rule mandates that any US person meeting the reporting
threshold of Form BE-10 make a Form BE-10 filing, whether or not
requested to do so by the BEA. Depending on the number of a US
person's Foreign Affiliates (described below), the deadline for
making the Form BE-10 filing is either May 29,
2015 or June 30, 2015.

Using annual (BE-11) and "benchmark" (BE-10) surveys,
the BEA produces statistics on US direct investment abroad. The
benchmark surveys are prepared once every five years and provide
the BEA with financial and operating data on foreign investments.
The data are used to measure the scope and effect of US direct
investment abroad and to measure changes in such investment over
time. In addition, the data are used to derive estimates of foreign
direct investment by US persons in non-benchmark years.

Reporting Threshold and Requirements

Under the revised rule, any US person with a Foreign Affiliate
during its 2014 fiscal year must file a BE-10 report.

A "Foreign Affiliate" is a foreign business
enterprise (whether or not incorporated) in which a US person
directly or indirectly owns or controls at least 10 percent of the
voting stock (or an equivalent interest).

A US person with Foreign Affiliates is considered a "US
Reporter" for purposes of the Form BE-10 filing.

A "US person" is broadly defined to include
individuals, corporations, partnerships and other organizations and
governments or agencies thereof that are residents of the United
States or otherwise subject to US jurisdiction.

All US persons, private funds included, that meet the BE-10
reporting requirements should file a BE-10 report.

Individuals, estates, trusts and non-profit organizations
meeting the BE-10 reporting criteria through indirect ownership or
control of a Foreign Affiliate (i.e., through ownership or control
of more than 50 percent of a business enterprise rather than
through direct ownership) are not required to file on their own
behalf; instead, the BE-10 filing would be made by the US business
enterprise owned by such individual, estate, trust or non-profit
organization.

US Reporters will file a Form BE-10A for themselves and submit
data on each of their Foreign Affiliates on Form BE-10B, Form
BE-10C or Form BE-10D, depending on the assets, sales and net
income of each Foreign Affiliate. The following summarizes the
reporting requirements:

Form BE-10A—submitted for the US Reporter.

Form BE-10B—submitted for each majority-owned Foreign
Affiliate with assets, sales, net income or net losses (each an
"economic marker") greater than $80 million at any time
during or for its 2014 fiscal year.

Form BE-10C—submitted for:

each majority-owned Foreign Affiliate for which any economic
marker exceeded $25 million, but no economic marker exceeded $80
million at any time during or for its 2014 fiscal year;

each minority-owned Foreign Affiliate for which at least one
economic marker exceeded $25 million; and

each Foreign Affiliate for which no economic marker exceeded
$25 million at any time during or for its 2014 fiscal year, but
which is a parent company of a Foreign Affiliate being reported on
Form BE-10B or BE-10C.

Form BE-10D—submitted for each Foreign Affiliate for
which no economic marker exceeded $25 million at any time during or
for its 2014 fiscal year and which is not a parent company of a
Foreign Affiliate being reported on Form BE-10B or BE-10C.

A BE-10 Claim for Not Filing form may be submitted by any US
person that is notified by the BEA to make a Form BE-10 filing, but
had no Foreign Affiliates during its 2014 fiscal year.

US persons that are more than 50 percent owned by a parent US
person are not required to file a Form BE-10A, as such
company's business, financial and operational information will
be covered on the Form BE-10A of its US parent.

Penalties for Noncompliance

Both civil and criminal penalties may be imposed for failure to
file the applicable BE-10 forms with the BEA.

The civil penalties include a fine of up to $25,000 per
violation and the right of the BEA to seek injunctive relief.

Criminal penalties, including imprisonment of up to one year,
for willful failure to file may be imposed on individuals and
officers, directors, employees, or agents of any entity that
knowingly participate in violation of the rule.

For US Reporters filing to report fewer than 50 Foreign
Affiliates, the filing deadline is May 29, 2015.
For those reporting 50 or more Foreign Affiliates, the deadline is
June 30, 2015.

The BEA has indicated that reasonable requests for extensions of
the deadlines will be considered. An extension request may be
submitted to the BEA by a US Reporter via fax to (202) 606-5312,
through the BEA's
e-file system or over the phone by calling (202) 606-5566.

For more information on the BE-10 requirements and access to the
applicable forms, visit the
BEA website.

Mayer Brown is a global legal services provider
comprising legal practices that are separate entities (the
"Mayer Brown Practices"). The Mayer Brown Practices are:
Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both
limited liability partnerships established in Illinois USA; Mayer
Brown International LLP, a limited liability partnership
incorporated in England and Wales (authorized and regulated by the
Solicitors Regulation Authority and registered in England and Wales
number OC 303359); Mayer Brown, a SELAS established in France;
Mayer Brown JSM, a Hong Kong partnership and its associated
entities in Asia; and Tauil & Chequer Advogados, a Brazilian
law partnership with which Mayer Brown is associated. "Mayer
Brown" and the Mayer Brown logo are the trademarks of the
Mayer Brown Practices in their respective
jurisdictions.

This
Mayer Brown article provides information and comments on legal
issues and developments of interest. The foregoing is not a
comprehensive treatment of the subject matter covered and is not
intended to provide legal advice. Readers should seek specific
legal advice before taking any action with respect to the matters
discussed herein.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

It's 9:30 pm on a Sunday and you just got a call on your cell from U.S. Customs & Border Protection ("CBP") at LAX. A Vice President from one of your foreign offices has been spending a lot of time here lately developing business leads and strategy.

This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).

Email Address

Company Name

Password

Confirm Password

Position

Mondaq Topics -- Select your Interests

Accounting

Anti-trust

Commercial

Compliance

Consumer

Criminal

Employment

Energy

Environment

Family

Finance

Government

Healthcare

Immigration

Insolvency

Insurance

International

IP

Law Performance

Law Practice

Litigation

Media & IT

Privacy

Real Estate

Strategy

Tax

Technology

Transport

Wealth Mgt

Regions

Africa

Asia

Asia Pacific

Australasia

Canada

Caribbean

Europe

European Union

Latin America

Middle East

U.K.

United States

Worldwide Updates

Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.

To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access

No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq

No, please do not send me promotional communications from Mondaq

Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions